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|BEIJING Artemi Panarin Black Jersey , Dec. 28 (Xinhua) -- China's Ministry of Finance (MOF) said Thursday it will exempt foreign companies from paying provisional withholding income tax on profits they re-invest in the country.
The news comes as the Chinese government is moving to attract foreign investors after a host of countries unveiled similar measures to lure foreign and domestic investment.
Foreign companies play an increasingly important role in boosting China's economy and promoting industrial and technological upgrades. The new policy will provide a better environment for foreign companies in the long-run, encourage them to continuously expand investment in China and boost win-win cooperation, the MOF said on its website.
The exemption is effective from January 1, 2017, meaning taxes paid this year will be refunded.
Foreign companies must meet a string of conditions to be eligible for the exemption, including direct investment into sectors encouraged by the Chinese government, and investment returns must be transferred directly to invested companies.
Countries are competing to attract foreign investment with a mixture of incentives including tax cuts and easier market access.
Spokesman of China's Ministry of Commerce (MOC) Gao Feng said earlier this month that China will remain a popular destination for foreign investment, due to economic stability, market potential and further opening up.
"Tax policy is an important factor in investment decisions, but it is not necessarily a decisive one," he said. "Economic stability, market potential and business environment of the target country are also important factors for investors to consider."
China implemented a revised foreign investment catalogue earlier this year, which relaxed restrictions on foreign investment in a number of industries.
Next year, a negative list approach to market entry, which states the sectors and businesses that are off limits to foreign investment, will be expanded nationwide.
Foreign direct investment (FDI) into the Chinese mainland rose 9.8 percent year on year to reach 803.62 billion yuan (around 122 billion U.S. dollars) in the first 11 months, faster than the 1.9-percent year-on-year increase registered in the first 10 months, according to data from the MOC.
Some of Intel Corp’s data center customers, whose thousands of computers run cloud networks, are exploring using microchips from the market leader’s rivals to build new infrastructure after the discovery of security flaws affecting most chips.
Whether Intel sees a slew of defectors or is forced to offer discounts, the company could take a hit to one of its fastest growing business units. Intel chips back 98 percent of data center operations, according to industry consultancy IDC.
Security researchers last week disclosed flaws, dubbed Meltdown and Spectre, that could allow hackers to steal passwords or encryption keys on most types of computers, phones and cloud-based servers.
Microsoft Corp said on Tuesday the patches necessary to secure the threats could have a significant performance impact on servers.
Intel will help customers find the best approach in terms of security, performance and compatibility, it said in a statement on Tuesday. “For many customers, the performance element is foremost, and we are sharply focused on doing all we can to ensure that we meet their expectations.”
Alternatives include Advanced Micro Devices, which shares with Intel a chip architecture called x86, or chips based on technology from ARM Holdings or graphics processing chips, which were developed for different tasks than Intel and AMD’s central processing units, or CPUs.
For Gleb Budman’s company, San Mateo-based online storage firm Backblaze, building with ARM chips would not be difficult.
“If ARM provides enough computing power at lower cost or lower power than x86, it would be a strong incentive for us to switch,” said Budman. “If the fix for x86 results in a dramatically decreased level of performance, that might increasingly push in favor of switching to ARM.”
Infinitely Virtual, a Los Angeles-based cloud computing vendor, is counting on Intel to replace equipment or offer a rebate to make up for the loss in computing power, Chief Executive Adam Stern said in an interview.
“If Intel doesn’t step up and do something to make this right then we’re going to have to punish them in the marketplace by not purchasing their products,” said Stern, whose company relies exclusively on Intel processors.
Cloud providers said swapping out previously installed Intel chips for rivals’ would be too complex, but moving forward they could expand their networks using alternatives.
TALLINN, Sept. 21 (Xinhua) -- The European Union (EU) welcomes foreign investors and capitals for Connecting Europe Facility (CEF) as a key EU funding instrument, said European Commissioner for Transport Violeta Bulc on Thursday.
Responding to a question at the transport ministers' press conference, Bulc said that for investment there are clear rules that has to be respected, which by no means indicates that the EU is closing doors to foreign investments.
She also said that the EU works well with Chinese investments on European projects.
Bulc said good transport connections are an important issue for the European Commission, and all modes of transport must be considered, including railways in addition to air connections, so that the provision of connections become sustainable.
On the second day of the informal meeting of energy and transport ministers of EU members, the EU transport continued discussions to chart the policies and investment needs for the development of the trans-European transport network (TEN-T) in the next funding period, that is, post-2020.
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